Relocation of Facilities

Although SDG&E does not focus on the relocation of its facilities in great detail, it is clear from the application and associated environmental documents, that the relocation is not required in order to add a second circuit to the Imperial Valley-La Rosita transmission line, but rather to accommodate the interconnection of two new merchant transmission projects. Baja California Power, Inc. (Baja)³ and Sempra Energy Resources (Resources) are each proposing to construct double circuit 230 kV transmission lines to the United States-Mexico border in order to connect transmission and generating facilities in Mexico with the electricity grid in California. Part of the proposed projects includes relocating approximately six poles of SDG&E's existing Imperial Valley-La Rosita transmission line in order to facilitate an easier interconnection of the Baja and Resources transmission lines to the Imperial Valley Substation.

SDG&E's application addressed assignment of costs associated with relocation of its facilities in order to facilitate interconnection of the two merchant transmission and generation projects. In addition, there may be additional environmental mitigation costs required as a result of this relocation. SDG&E has clarified that any costs associated with relocation of SDG&E facilities, be they planning, engineering, design, construction, or mitigation related, shall not be borne by SDG&E ratepayers.

Authority to construct the two proposed transmission lines is subject to approval of a Presidential Permit by DOE.⁴ The planned project route for both the Baja and Resources transmission lines lie entirely within land managed by BLM. DOE is conducting environmental review of the two projects as the lead agency under the National Environmental Policy Act of 1969 (NEPA), with BLM and DOI operating as cooperating agencies. As part of the review, DOE, BLM, and DOI are studying the environmental impacts of relocation of SDG&E's transmission facilities.

Construction of the merchant transmission projects and the related relocation of SDG&E's facilities were reviewed under the DOE's authority established in Executive Order No. 10485, and amended by Executive Order No. 12038, and 10 CFR § 205.320 et seq. (2000). Environmental review of the project is conducted in accordance with NEPA as codified at 10 CFR § 1021. In order to grant a Presidential Permit, DOE must determine if a proposed project is consistent with the public interest by assessing the environmental impacts and the impacts of the project on the operating reliability of the United States electric supply system.